New Delhi: Concerned over a “drastic” cut in small savings rate, a Parliamentary panel has asked the government to address the concerns of small savers particularly senior citizens and PPF account holders while reviewing such rates. “This drastic reset in small saving rates also appears to have been triggered by the demand from bankers for a level playing field vis-a-vis bank deposit rates,” the Standing Committee on Finance said. “This threat from small savings may be over-stated, as small savings schemes (with about Rs 7 lakh crore) manage only a fraction of the funds parked as bank deposits (about Rs 90 lakh crore),” it added.
The Committee pointed out that with rates on even long-term schemes such as the Public Provident Fund now set to float up and down every quarter, savers will find it difficult to make long-term financial plans.
